Knock sensors often time pick up noise that is just induced by the engine itself but it's not necessarily engine knock.

Yes there is a slight amount of electrical noise, but car manufacturers, especially higher end cars are becoming better and better with their wiring systems and computer systems to minimize noise.

Increasing timing advance in partial throttle or cruising conditions by a small amount is not going to cause damage to the motor as long as it's done diligently. The reason most car companies cannot just add more timing is because of emissions and NOx increase. When timing is increased NOx is increased and make the car perform poorly from an emission standpoint.

Increasing timing by a few degrees in cruising conditions will improve fuel economy and also lower the EGT's.

you are correct, thats why the electrical noise has to be properly filtered out. Ive personally heard knock via the knock sensors which are nothing but stethoscopes. All you hear is inectors firing and mechanical noise, and the abrupt knock event cannot be confused with engine noise as it is clear as day. As for knocking a lil here and there at partial thottle, it is just as important as wot imo....especial when you change the air flow characteristics of a car and run it on the stock tune plus some timing. I am not saying Shivs tune is knocking partial throttle all the time. I am say the stock tune knocks here and there, adding timing to that is not something i would personally do, hence the reason i asked him to check it out in his spare time.